Private Lending Requirements
- Borrowers must be a Company (Pty Ltd)
- Security located within metro Adelaide, Brisbane, Melbourne, Sydney or Perth and major regional areas considered
Further information can be found below.
Residential Property Security (subject to funds being used predominately for business purposes)
Indicative Interest Rate: 9.25% pa (No Line Fees)
Security Type: First Registered Mortgage
Loan Purpose: Purchase or Construction
Security Location: within metro Adelaide, Brisbane, Melbourne, Sydney, Perth
Verification Required: Accountants Serviceability Letter
Min Loan Amount: $500k
Max Loan Amount: $50M
Max LVR: 75%
Max Loan Term: 12-months
Repayment Type: IO, P&I or capitalised Interest
Rate Type: Variable
Additional Repayments: Yes
Upfront Application Fee: $0
Establishment Fee: from 2.0% +GST (deducted from loan proceeds at settlement)
Loan Docs: $3,080 +GST
Line Fees: None
Property Development
Indicative Interest Rate: 10.75% pa (No Line Fees)
Security Type: First Registered Mortgage
Loan Purpose: Construction (Apartments – Up to 12;
Security Location: within metro Adelaide, Brisbane, Melbourne, Sydney, Perth and major regional areas considered
Townhouses – Up to 8; Single or Multiple Houses – up to 12)
Business/Investment Purposes: Non Coded Loan
Min Loan Amount: $500k
Max Loan Amount: $8M
Max LVR: 70% land & 100% construction (subject to QS report)
Max Loan Term: 24-months
Repayment Type: IO, P&I or capitalised interest
Max IO Term: 24-months
Interest Rate Type: Variable
Additional Repayments: Yes
Upfront Application Fee: $0
Establishment Fee: from 2.0% +GST (deducted from loan proceeds at settlement)
Loan Docs: $3,080 +GST
Line Fees: None
Commercial Property Security
Indicative Interest Rate From: 10.99% pa (No Line Fees)
Security Type: First Registered Mortgage
Loan Purpose: All Commercial Properties considered
Security Location: within metro Adelaide, Brisbane, Melbourne, Sydney, Perth
Business/Investment Purposes: Non Coded Loan
Min Loan Amount: $200k
Max Loan Amount: $100M
Max LVR: 65%
Max Loan Term: 36-months
Repayment Type: Capitalised Interest, up to 12-Months
Interest Rate Type: Fixed
Additional Repayments: Yes
Upfront Application Fee: $0
Establishment Fee: from 2.0% +GST (deducted from loan proceeds at settlement)
Loan Docs: At Cost
Line Fees: None
Commercial Property Development
Indicative Interest Rate From: 9.99% pa (on drawn funds)
Security Type: First Registered Mortgage
Loan Purpose: Construction and/or Land Subdivision
Security Location: within metro Adelaide, Brisbane, Melbourne, Sydney, Perth
Business/Investment Purposes: Non Coded Loan
Min Loan Amount: $200k
Max Loan Amount: $30M
Max LVR: 60% (subject to QS report)
Max Loan Term: 12 months (can be extended if project deems it)
Repayment Type: Capitalised Interest
Interest Rate Type: Variable
Additional Repayments: Yes
Line Fee: 0.20% per month over whole facility
Upfront Application Fee: $0
Establishment Fee: from 2.0% +GST (deducted from loan proceeds at settlement)
Loan Docs: At Cost
Land Banking
Indicative Interest Rate: 10.50% pa (No Line Fees)
Security Type: First Registered Mortgage
Loan Purpose: Land Acquisition
Security Location: within metro Adelaide, Brisbane, Melbourne, Sydney, Perth
Business/Investment Purposes: Non Coded Loan
Min Loan Amount: $500k
Max Loan Amount: $8M
Max LVR: 70%
Max Loan Term: 24-months
Repayment Type: IO, P&I or capitalised
Max IO Term: 24-months
Interest Rate Type: Variable
Additional Repayments: Yes
Upfront Application Fee: $0
Establishment Fee: from 2.0% +GST (deducted from loan proceeds at settlement)
Loan Docs: $3,080 +GST
Line Fees: None
Residual Stock Security
Indicative Interest Rate: 10.50% (No Line Fees)
Security Type: First Registered Mortgage
Loan Purpose: Residual stock or Refinance
Security Location: within metro Adelaide, Brisbane, Melbourne, Sydney, Perth
Business/Investment Purposes: Non Coded Loan
Min Loan Amount: $500k
Max Loan Amount: $6M
Max LVR: 70%
Max Loan Term: 24-months
Repayment Type: IO, P&I or capitalised
Maxi IO Term: 24-months
Interest Rate Type: Variable
Additional Repayments: Yes
Upfront Application Fee: $0
Establishment Fee: from 2.0% +GST (deducted from loan proceeds at settlement)
Loan Docs: $3,080 +GST
Line Fees: None
Borrower Profile
As private lending operate in the non-coded space, borrowers must be Company Entities that are either business owners; property developers; entrepreneurial individuals or Companies operating an SMSF. Generally, these borrowers face difficulties obtaining finance from mainstream lenders with rigid policies.
Acceleron understands that most self-employed borrowers need more flexible options to demonstrate income and much faster turn-around times. Borrowers will need to have an ABN/ACN and identify as either a Property Investor; Property Developer; or a SME.
The security property needs to be either a Development Project (Residential or Commercial); Land acquisition for Development; Commercial Property (ideally with a solid Lease); or Residential Property with borrowing subject to the funds being predominately for business purposes.
Subdivisions are always on a case-by-case basis and as with all private lending, the borrower’s Exit Strategy is of the highest importance.
Borrower Required Documentation
As in all lending, the “5C’s” are relevant, Credit; Character; Collateral; Capacity; and Conditions. We need to access the security on offer; the borrowing entity; serviceability; and the exit strategy.
All loans
• 100 Points of ID for all guarantors
• Personal A&L statement for the borrowing entity & all guarantors
• Feasibility (for all Development Loans)
• Certified trust deed (if applicable)
• Accountants letter (on our template) confirming serviceability
• Signed application form
• Council Rates notices for all securities on offer
Refinance applications
• Last 6 months of loan statements for all mortgage facilities being refinanced
Purchase
• Full copy of the executed contract of sale including all special conditions
• Executed lease agreement or rental income statement (if applicable)
Residual stock
• Independent accountant letter confirming margin scheme
• Occupancy Certificate for all securities.
• No presales contracts required
Construction loans
• Copy of the DA, Plans and Building Permits
• Copy of the builders and developers resumes
• Breakdown of the building costs
• Copy of the building contract
• Copy of the construction certificate/ building approval (if available)
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